Advice needed

[Gocubsgo]

Hello all,

I’ve lurked on here for several months and have learned that “what I don’t know” is greater than “what I know”. That being said, I’d like to post my stats and get some advice.

I lost my dad over Christmas to dementia. He was 74. His 83 yr old brother passed six weeks before that and now my remaining uncle (in his late 70’s) was just diagnosed with stage 4 cancer.

I’m a cancer survivor myself (5 yrs in remission) who was left with an degenerative autoimmune disease (also in remission with meds) triggered by the chemo. Life is short and I’ve already won the genetic lottery twice ... chances are pretty good that I won’t see 80.

Mega Corp keeps getting bigger and I’m currently handling the workload for two positions as there’s a hiring freeze. I’m frustrated, still grieving and so tired that I just sleep and work. This isn’t living...

I’m 48, divorced and no children.

Cash: $205k in MM earning 1.7%

401k: $190k

Taxable portfolio: $624k all equities

Currently earning $14k/yr in dividends and interest.

I calculated SS if I quit today would be $1,900/mo at 67.

Only debt is my mortgage. I plan on selling the house in the spring and using the ~ $125k equity I should recoup(after expenses) to purchase another outright.

Annual expenses are $38k including HI

I’ve checked ACA plans in my area and, if I can keep my MAGI low, I can get coverage that includes my meds and docs at a cheaper premium than what I pay through MC (with subsidies).

My questions are:

Can I retire?

If no, how close am I?

If so, what withdrawal sequence should I use?

Thanks so much for your help.

 

[njhowie]

A single person, with $1M and no debt and expenses under $40K/year, not including SS income should be fine.

When you leave your job, roll the 401k to an IRA with Fidelity. Don't take any withdrawals from it until you minimally reach 59 1/2.

Personal suggestion - try to get yourself laid off with a severance package. Minimally, you'll get to collect unemployment for probably 6 months. Sleeping at work is a good start. Strategically falling behind on projects and missing deadlines can also help move it along.

 

[Walt34]

A single person, with $1M and no debt and expenses under $40K/year, not including SS income should be fine.

+1

To be sure, if you haven't already see this list of questions take a look and consider your responses:

http://www.early-retirement.org/for...re-asking-can-i-retire-69999.html#post1399715

 

[Gocubsgo]

Wonderful! Thank you for your responses.

I would love to be laid off and, on occasion, have considered pulling a Constanza and napping under my desk. I’ll settle for quietly smiling through our 7am meeting tomorrow and calling a real estate agent at lunch to get the ball rolling... please add me to the Class of 2020.

 

[pb4uski]

Hello all,

I’ve lurked on here for several months...

If you have lurked here for several months then you know that the next question that we will ask will be "What does FIRECalc say?".

Hint: I think its looking pretty good.

 

[38Chevy454]

Assuming you are confident in your expenses, it seems you can do it. Is you $38K including health insurance figured on ACA or what type? That's your biggest risk I think. You can also be potentially subject to sequence of returns risk. As you don't have a lot cushion. Is there any inheritance included in your numbers that is waiting to be received? If so, may want to wait until that is done.
You could always go back to work if things really go bad. Do you work in a field where you can go back easily?

 

[chris2008]

Hi, the Financial Samurai sells a book how to negotiate a severance through his blog. I do not know if it is worth anything, though.
Take care and good luck!

 

[ut2sua]

OP, I am rooting for you. It sounds like a recharge is what you need the most right now. You may make more $ keep on working, but if the internal battery is drain, more $ won't help. If you can keep life simple, you will be fine. RE will make you extremely rich in free time. Time becomes more valuable than $ at some point in life. Wishing you all the best.

 

[Scratchy]

OP, have you looked into whether you are eligible for bereavement leave at work, as you have lost your father recently?

You have been through a lot and I hope you do not have to remain in a position that makes you unhappy. Especially if you are in a field where you can work part time or seasonally I think you will be fine. At your level of expenses, it should be easy to adequately supplement your income if necessary due to unexpected expenses or unlucky sequence of investment returns.

Best wishes and I'm sorry for your recent losses.

 

[Aiming_4_55]

Cash: $205k in MM earning 1.7%

401k: $190k

Taxable portfolio: $624k all equities

Currently earning $14k/yr in dividends and interest.

I calculated SS if I quit today would be $1,900/mo at 67.

What is your current asset allocation? is your 401k all equities like your taxable portfolio? If so, maybe consider adjusting.

Any FMLA or stress/short term disability benefits? My Dr. during my last physical, asked alot of stress/depression/lack of sleep related questions due to a personal loss. He offer me a Dr's note for a few weeks off. Can you milk paid short term leave/disability?

Consider timing of any vacation time, bonus payment, or equity vesting that may benefit you in the next few months.

Take advantage of full medical or flex spending accounts sooner vs later.

Sorry for your loss.

 

[Rianne]

Glad your cancer is remission and dam that autoimmune condition. I would consider health first. You have the firecalc/early-retirement seal of approval. You didn't mention hobbies or how you'd fill your time. As long as your expenses are stable...go for it and enjoy.

 

[Cassius King]

Best of luck to you.
I'm concerned about the idea to buy a new home for $125,000. I'm sure it can be done, but what will the costs be to update, maintain, etc?

If you're using a portion of the taxable to facilitate the home purchase, then you're cutting it close.

 

[bloom2708]

I agree to not just buy another home. Home ownership itself is stressful.

Sell the house. Rent for 1 year. Being single, you are completely in control.

Find hobbies and activities that don't cost much. Get in the best shape of your life. Move to somewhere you would perhaps vacation. Make life a vacation and de-compress for a while.

Buying a house with all the stuff that can come up doesn't seem like a de-stressing move.

Good luck!

 

[Gocubsgo]

Thanks to all for your kind words. You bring up some good points that i hadn’t considered.

MC gave me three whole days bereavement leave for the funeral. The rest I took PTO. The company requires us to take all PTO during the year so we can’t accrue and roll over any hours. Our PTO calendar ends September 30 each year so I’m already running low as he converted to hospice care in October. I’ve considered FMLA leave just to get some rest and may pull that lever as a final option vs. resigning.

There’s no inheritance as my mom is still living. They had a working cattle farm (albeit small) about two hours away from where I live and all my free time the last two years has been spent there helping with my dad (we cared for him at home) and the cows. Mom isn’t sure she’ll keep the farm but she’ll stay in the small town as that’s all she’s ever known. That’s why I had considered a small home just off the town square down there... they can be had for less than $125k. It would give her space but I could be close enough to help. Plus, it’s like Mayberry down there and the change of pace would do me good. I think you may be correct that a rental would give me better flexibility so I need to see what options are there.

My 401k is in a 2035 retirement target fund so it’s a mix of equities and bonds.

 

[Travelfreek]

With your auto immune disease, have you considered applying for SSDI? Also, I would leave the big bucks in the 401k and strategically roll over into roth ira in pieces since your income should be minimal. If you roll a big amount over, you are then subject to pro rata rule in roth conversions.